UK pub operators report losses, job cuts as lockdown pain builds



© Reuters. Customers are seen at a table outside The Island Queen pub in London

(Reuters) – British pub operators Mitchells & Butlers (LON:) and Fuller, Smith & Turner posted financial losses on Thursday and said they had cut around 2,000 jobs as the hospitality sector reels from the past month’s re-tightening of COVID-19 restrictions.

The larger of the two, M&B, which owns All Bar One, Harvester and Browns, said it had cut 1,300 roles. Fuller’s said its total number of employees had been reduced by 20%, translating to around 990 job losses.

M&B reported an adjusted pretax loss of 32 million pounds for the year ended Sept. 26 and Fuller’s a first-half loss of 22.2 million pounds.

Pubs, restaurants and hotels have been among the hardest hit by the COVID-19 pandemic, with social distancing measures and curfews hitting capacity even when establishments have not been forced to shut altogether by lockdowns.

The current lockdown in England started on Nov. 5 and is set to end on Dec. 2, but tough restrictions are expected to continue in many areas, and pubs and restaurants in the toughest third tier will only be allowed to reopen for takeaways.

With 1.56 billion pounds in net debt as of Sept. 26, Mitchells & Butlers in June had agreed to revised financing arrangements with its main creditors to bolster its available reserves after avoiding a debt default in April.

M&B employs about 44,000 people in about 1,700 pubs across the UK, while Fuller’s employed 4,957 according to its latest annual report.

READ  Google goes public with rebuke on Australia antitrust law
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here